Call put option rates live
You start making profits once the price of Reliance in the cash market crosses Rs per share i. Now let's take a look at how your investment performs under various scenarios. If the AGM does not result in any spectacular announcements and the share price remains static at Rs or drifts lower to Rs because market players are disappointed, you could allow the Call Option on Reliance to lapse. In this case, your loss would be Rs 10 per share, amounting to a total of Rs 6, However, things could have been worse if you had purchased the same shares in the cash market or in the futures segment.
On the other hand, if the company makes an important announcement, it would result in a good amount of buying and the share price may move to Rs 1, You would stand to gain Rs 20 per share, i. An analogy of an Option. Call and Put Options. Illustration of a Call Option on an index. Illustration of a Put Option on stocks. Settling a Call Option. Illustration of a Put Option on an index.
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